KUALA LUMPUR: The incidence of absolute poverty in urban areas has increased from 3.8 per cent (223,300 households) in 2019 to 4.5 per cent (227,100 households) last year.
Economy Minister Rafizi Ramli, in a written parliamentary reply yesterday, said in contrast, the rural areas witnessed a slight decrease in absolute poverty from 12.4 per cent (182,100 households) to 12 per cent (210,500 households) during the same period.
"While the urban areas have a lower poverty incidence compared to rural areas, the number of urban households living in poverty is greater due to the larger urban population, with approximately 75.5 per cent residing in urban areas in 2022," he said in response to Datuk Seri Dr Wan Azizah Wan Ismail (PH-Bandar Tun Razak).
Dr Wan Azizah asked about the ratio of urban poor before and after the Covid-19 pandemic, along with measures to bridge the income gap between rural and urban areas to achieve a balanced and inclusive Madani economy.
As for the income disparity between rural and urban areas, Rafizi said it had slightly widened, with a ratio of 0.58:1 in 2019 increasing to 0.57:1 in 2022.
"In response to these challenges, the government has outlined a series of strategies aimed at expanding infrastructure and services, as well as harnessing the economic potential of rural areas among others.
"These measures outlined set to contribute to a reduction in the income gap between rural and urban areas, with a target ratio of 0.67:1 by 2025."
Rafizi said another key focus is to improve connectivity and mobility between rural and urban areas, namely to enhance land and water transportation, along with e-hailing services.
"Internet access will be improved in the rural areas, to bolster internet connectivity, facilitating socio-economic activities and business development through digital platforms."
He said to address regional disparities, the government has allocated substantial funding in the 2024 Budget, including RM1.63 billion for road construction and upgrades in villages and rural areas; RM939 million for water supply to 5,150 households and electricity supply to 2,200 households.
The government has also allocated RM100 million for the construction and upgrading works of basic amenities like community halls, multipurpose halls and covered walkways among others in rural and remote areas.